From Australia (RW): Karoon Gas Australia has sold its 40% equity in the offshore Browse Basin permits that contain the Greater Poseidon (SEN, 29/24) gas complex to Origin Energy for up to $800 million.

The payment details within the conditional sale-and-purchase agreement include an upfront payment to Karoon of $600 million upon completion of the deal. There will also be a deferred cash payment of $75 million payable on a final investment decision for development of the fields plus a second deferred payment of $75 million payable on first production. Origin will pay an extra $5 million for every 3 Bcm of independently certified 2P reserves exceeding 92 Bcm across the permits at the time of FID to a maximum of $50 million.

Origin will also pick up proportional costs associated with the Pharos-1 exploration well currently being drilled along with proportional costs associated with the ongoing Poseidon fields appraisal program.

The deal is subject to pre-emptive rights and regulatory approval. ConocoPhillips operates (40%) and PetroChina holds the balance.

Karoon expects completion of the deal during the third quarter of this year.

The development of the Poseidon fields could involve a gas pipeline to an LNG plant in Darwin or an FLNG unit facility at the field. Karoon has retained its 90% interest in another permit to th e north.

The deal comes two weeks after Karoon’ reported a $63 million farm-in to its offshore Carnarvon Basin permits by Apache Energy.

For Origin, the Poseidon assets would extend its gas interests in Australia. The company has extensive stakes in South Australia’s onshore Cooper Basin and Queensland; has recently farmed into permits in the Beetaloo Basin in the Northern Territory; and operates the Australia Pacific CSG-LNG project feeding Surat/Bowen Basin coal seam gas into an LNG plant being built on Curtis Island near Gladstone in Queensland.